|Book value per share
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Definition of Book value per share
Book value per share
The ratio of stockholder equity to the average number of common shares. book value
Book Value per Share
The book value of a company divided by the number of shares
Generally speaking, these terms
Ratios that are designed to measure the relative claims of stockholders to earnings
Market price of a share divided by book value per share.
A term often used instead of the more formal and correct
Same as PV, but usually includes a subtraction for an initial cash outlay.
a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity.
the value in todayâ€™s dollars of cash flows that occur in different time periods.
The net present value analysis of an asset if financed solely by equity
Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign
For investment companies, the management fee and "other expenses,"
The periodic rate times the number of periods in a year. For example, a 5%
The effective, or true, annual rate of return. The APY is the rate actually
The annual rate of return that when compounded t times, would have
Number of shares authorized for issuance by a firm's corporate charter.
The ratio of accounts receivables to sales, or the total
BARRA's performance analysis (PERFAN)
A method developed by BARRA, a consulting firm in
With respect to convertible bonds, the value the security would have if it were not convertible
A banker or trader's positions.
cash A firm's cash balance as reported in its financial statements. Also called ledger cash.
The cumulative book income plus any gain or loss on disposition of the assets on termination of the SAT.
The managing underwriter for a new issue. The book runner maintains the book of securities sold.
A company's book value is its total assets minus intangible assets and liabilities, such as debt. A
The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the
Capital market imperfections view
The view that issuing debt is generally valuable but that the firm's
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
Cash flow per common share
Cash flow from operations minus preferred stock dividends, divided by the
An amount the insurance company will pay if the policyholder ends a whole life
Short-term unsecured promissory notes issued by a corporation. The maturity of
Committee, AIMR Performance Presentation Standards Implementation Committee
The Association for Investment Management and Research (AIMR)'s performance Presentation Standards Implementation
The length of the time period (for example, a quarter in the case of quarterly
Also called parity value, the value of a convertible security if it is converted immediately.
The length of time for which the customer is granted credit.
Commercial paper sold directly by the issuer to investors.
The period during which a customer can deduct the discount from the net amount of the bill
Discounted payback period rule
An investment decision rule in which the cash flows are discounted at an
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
Dividends per share
Dividends paid for the past 12 months divided by the number of common shares
Earnings per share (EPS)
EPS, as it is called, is a company's profit divided by its number of outstanding
Short-term notes with maturities up to 360 days that are issued by companies in
The time interval over which a money manager's performance is evaluated.
The amount of advantage over a current market transaction provided by an in-the-money
The weighted average of a probability distribution.
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
Extraordinary positive value
A positive net present value.
See: Par value.
FHA prepayment experience
The percentage of loans in a pool of mortgages outstanding at the origination
Firm's net value of debt
Total firm value minus total firm debt.
Fully diluted earnings per shares
Earnings per share expressed as if all outstanding convertible securities
Funds From Operations (FFO)
Used by real estate and other investment trusts to define the cash flow from
The amount of cash at a specified date in the future that is equivalent in value to a specified
A constant stream of cash flows without end that is expected to rise indefinitely.
Length of time that an individual holds a security.
Holding period return
The rate of return over a given period.
Income statement (statement of operations)
A statement showing the revenues, expenses, and income (the
Intrinsic value of an option
The amount by which an option is in-the-money. An option which is not in-themoney
Intrinsic value of a firm
The present value of a firm's expected future net cash flows discounted by the
Issued share capital
Total amount of shares that are in issue. Related: outstanding shares.
Limit order book
A record of unexecuted limit orders that is maintained by the specialist. These orders are
Net amount that could be realized by selling the assets of a firm after paying the debt.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
Management/closely held shares
percentage of shares held by persons closely related to a company, as
1) The price at which a security is trading and could presumably be purchased or sold.
Market value ratios
Ratios that relate the market price of the firm's common stock to selected financial
Market value-weighted index
An index of a group of securities computed by calculating a weighted average
A bank runs a matched book when the distribution of maturities of its assets and liabilities are equal.
Related: par value.
A portfolio strategy in which a portfolio is created that will be capable of
Net adjusted present value
The adjusted present value minus the initial cost of an investment.
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share
Net book value
The current book value of an asset or liability; that is, its original book value net of any
Net operating losses
Losses that a firm can take advantage of to reduce taxes.
Net operating margin
The ratio of net operating income to net sales.
The period of time between the end of the discount period and the date payment is due.
Net present value (NPV)
The present value of the expected future cash flows minus the cost.
Net present value of growth opportunities
A model valuing a firm in which net present value of new
Net present value of future investments
The present value of the total sum of NPVs expected to result from
Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs
Net salvage value
The after-tax net cash flow for terminating the project.
In the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not
See: unmatched book.
Purchase or sale of government securities by the monetary authorities to increase or
Open-market purchase operation
A systematic program of repurchasing shares of stock in market
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from
The average time intervening between the acquisition of materials or services and the final
Degree to which exchange rate changes, in combination with price changes, will alter a
Operating profit margin
The ratio of operating margin to net sales.
Short-term, cancelable lease. A type of lease in which the period of contract is less than the
Fixed operating costs, so-called because they accentuate variations in profits.
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is
Operationally efficient market
Also called an internally efficient market, one in which investors can obtain
Original face value
The principal amount of the mortgage as of its issue date.
Outstanding share capital
Issued share capital less the par value of shares that are held in the company's treasury.
shares that are currently owned by investors.
When a security is expected to appreciate at a rate faster than the overall market.
Money market instruments, commercial paper and other.
Paper gain (loss)
Unrealized capital gain (loss) on securities held in portfolio, based on a comparison of
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